Read on for an overview of this case.
Dawkins Haulage & Plant Hire Limited
John Dawkins (“Mr Dawkins”) caused Dawkins Haulage & Plant Hire Limited (“DH”) to breach the terms and conditions of the Coronavirus Business Interruption Loan (“CBILS”) Scheme and Bounce Back Loan (“BBL”) Scheme by applying for, and receiving, a BBL of £50,000 despite there being a CBILS already in place within the group of companies and failing to offset the BBL against the CBILS, as required by the Scheme conditions.
The BBL funds were instead transferred to a connected company for no economic benefit to DH.
In that:
- The BBL conditions do not permit an application for a BBL where the company is part of a wider group, within which a CBILS loan has already been obtained, unless those facilities will be refinanced in full by the BBL being applied for.
- On 17 June 2020 Mr Dawkins signed a Debenture created in respect of a CBILS for which an associated company J Dawkins Limited (“JD”) was listed as Borrower.
- On 17 June 2020 Mr Dawkins signed a Debenture created in respect of a CBILS for which an associated company Dawkins Group Limited (“DG”) was listed as Chargor.
- On 18 June 2020 Mr Dawkins signed the application for a BBL of £50,000 for DH, in which he stated that this was the only BBL application being made by either DH and/or the associated group of companies and also that DH and/or the group had not applied for a CBILS.
- On 30 June 2020, BBL funds of £50,000 were paid into DH’s bank account.
- On 7 July 2020 a payment of £50,000 was made from DH’s bank account to an associated company.
- At the date of DH’s Liquidation on 22 December 2020, a total of £2,567,557 was owed to creditors, of which at least £533,838 was owed in respect of a CBILS, £50,000 in respect of the BBL, £1,471,350 to trade creditors, and £512,369 to a second associated company.
Dawkins Group Limited
Mr Dawkins caused DG to breach the terms and conditions of the CBILS Scheme and BBL Scheme by applying for, and receiving, a BBL of £50,000 despite there already being a CBILS and BBL in place within the group of companies and failing to offset the BBL against the CBILS, as required by the Scheme conditions.
The BBL funds were then transferred to a connected company for no economic benefit to DG.
In that:
- The BBL conditions do not permit an application for a BBL where the company is part of a wider group, within which a CBILS loan has already been obtained, unless those facilities will be refinanced in full by the BBL being applied for.
- On 17 June 2020 Mr Dawkins signed a Debenture created in respect of a CBILS for which an associated company JD was listed as Borrower. On 17 June 2020 Mr Dawkins signed a Debenture created in respect of a CBILS for which DG was listed as Chargor.
- On 18 June 2020 Mr Dawkins signed the application for a BBL of £50,000 for DH.
- On 30 June 2020, BBL funds of £50,000 were paid into DH’s bank account.
- On 22 July 2020 Mr Dawkins signed the application for a BBL of £50,000 for DG, in which he stated that this was the only BBL application being made by either DG and/or the associated group of companies and also that DG and/or the group had not applied for a CBILS.
- On 16 September 2020, BBL funds of £50,000 were paid into DG’s bank account. On 16 September 2020 a payment of £50,000 was made from DG’s bank account to an associated company, the same associated company who had previously benefitted from the payment of £50,000 from DH.
- At the date of DG’s Liquidation on 22 December 2020, a total of £1,782,111 was owed to creditors, of which at least £533,838 was owed in respect of the CBILS, £50,000 in respect of the BBL, and £1,198,273 to trade creditors.
